William Ruto has called an emergency East African Community (EAC) summit as the eight-member bloc faces a $89.37 million funding shortfall, putting its institutions under pressure and casting uncertainty over the future of regional integration.
The East African Community (EAC) is set to convene an emergency summit on 7 March in Arusha the existing system. To date, only Kenya Tanzania she explained, noting that President William Ruto is particularly concerned and expects leaders to take a definitive position in their capacity as heads of state.
The financial constraints have hindered the functioning of key organs, including the East African Legislative Assembly, the East African Court of Justice, and the Inter-University Council of East Africa, which is owed $18.4 million. Smaller bodies have also been affected, such as the Lake Victoria Fisheries Organisation ($2.1 million) and the Civil Aviation Safety and Security Oversight Agency in Kampala ($3.1 million). At the legislative assembly, members have not received salaries since November, weakening oversight roles and drawing concern from lenders including KCB Bank Tanzania.
Alex Obatre, Clerk of the Assembly, cautioned members and staff about “serious liquidity challenges caused by delayed payments from partner states,” noting that by early February only 38% of the approved budget had been received. The shortfall has resulted in unpaid salaries and gratuities, postponed sessions, and delays in meeting statutory obligations.
Kenyan legislator David Sankok confirmed that legislative sittings have been interrupted. “Receiving salaries consistently has become difficult. We have now gone without pay for some time, which is challenging,” he said, attributing the problem to member states failing to meet their financial commitments. He highlighted the Democratic Republic of Congo and South Sudan for their substantial arrears and suggested that a new financial arrangement may be required to avoid recurrent crises.
EAC Secretary General Veronica Nduva has separately sought clarification on the delayed payment of members’ salaries, following complaints from KCB Bank Tanzania regarding unpaid loan instalments.
For a regional bloc that spans more than 300 million people and is seen as one of Africa’s most advanced integration initiatives, the budgetary impasse presents both practical challenges and reputational risks. Officials warn that, if unresolved, the funding gap could trigger operational paralysis and potential legal action, undermining investor confidence just as regional trade initiatives are receiving renewed global attention.
The Rwanda-backed M23 armed group has rapidly seized swathes of territory in the mineral-rich eastern DRC in an offensive that has left thousands dead and displaced vast numbers. The summit comes as the M23 advances on the town of Kavumu, which hosts an airport critical to supplying Congolese troops. (Photo by ERICKY BONIPHACE / AFP) (Photo by ERICKY BONIPHACE/AFP via Getty Images)
The upcoming Arusha summit will put to the test whether political commitment can align with the EAC’s economic goals and restore the financial stability needed to sustain regional integration.